Shares flat on technical selling

KARACHI — Trading on the Karachi share market yesterday resumed on a higher note as investors continued to build up long positions on banking, oil sectors and some blue chips amid market talk of strong presence of foreign buying.

By Our Correspondent

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Published: Tue 8 Apr 2008, 9:33 AM

Last updated: Sun 5 Apr 2015, 11:36 AM

The early buying euphoria was also well-reflected in the KSE 100-share index,which maintained its weekend run-up and soared well over 100 points to hit its highest level so far at 15,589.32.The strength of leading base shares, notably MCB, OGDC, Engro Chemical Pakistan, Arif Habib Securities and Bank AlFalah contributed to the initial robust opening.

But the closing was a bit lower as it ended with fractional fall of 2.71 points at 15,469.74 on snap technical selling by some of the leading punters.Its junior partner on the other hand rose by 11.29 points at 18,871.15.

"The snap reaction may have been caused by some negative developments in the Sindh assembly session followed by walk out by MQM on reports of maltreatment of the former chief minister," said Ahsan Mehanti an analyst adding"essentially I will call it technical correction in an apparent overbought market."

There was nothing wrong in the background corporate news to which the reaction could be attributed,"he said. A 25 per cent cash dividend by Lakson Tobacco company whose management has decided to close the local production facilities because of massive losses caused by December 27, buring of the factory as a reaction to Benazir Bhutto's assassination shows that sharing of profits with the shareholders is a chief priority.

"Foreign investors are in market in a big way and may have a long-term planning and sound portfolio building though on selected counters," another leading analyst Faisal A.Rajabali said "the picking up of stocks, notably in the banking oil sectors show that they mean business."

Dividend season for the financial year ended March 31, is just around and indications are that corporate earnings of most of the leading companies show the payouts are expected to be on the higher side and in line with the analysts predictions,which push the market further higher in the coming weeks, he said.

The general perception is that they are now pretty sure that the new political set up is fairly strong and could deliver despite the fact they were trusted with an economy, which needs massive investment both local and foreign.

MCB, Bank Alflah, Arif Habib Securities, OFDC, Engro Chemical, Nishat Mills were in the forefront the rising shares, which ended with sharp gains even at the highly inflated levels.

Leading gainers were led by Siemens Pakisan and AKD Capital, up by Rs.31.00 and 30.00, while Pakistan Engineering and Colgate Pakistan fell by Rs.18.40 and 15.00.

Trading volume fell from the weekend higher level to 255m shares as losers held a comfortable lead over the gainers at 172 to 144, with 37 shares holding on to the last levels.

Arif Habib Securities led the list of actives, sharply higher by Rs.8.60 at Rs.188.60 on 24m shares followed by Nishat Mills, up by Rs.6.15 at Rs.129.50 on 18m shares, D.G.Khan Cement, firm by Rs.1.45 at Rs.116.45 on 16m shares, OGDC, steady by 25 paisa at Rs.25 paisa at Rs.137.50 on 12m shares, Engro Chemical, higher by Rs.7.20 at Rs.347.40 on 12m shares.

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